Intraday Market Thoughts

Archived IMT (2010.09.21)

by Ashraf Laidi
Sep 21, 2010 11:28

EURUSD RALLIES ON LUCK OF THE IRISH as Irelands bond auctions were well subscribed with 5.1 & 2.9 bid-cover ratios for 4-year and 8-year bonds respectively, which weighed on bond yields and lifted the euro. As Ive said on twitter earlier this morning, the ONLY disappointing bond auction from any Eurozone nations over the past 3 months has been last weeks Portuguese bond auctions. EURUSD proves once again to successfully hold well above that $1.2950 support. The solid auctions mean that the euro will remain relatively shielded against any knee-jerk selling once the FOMC announces NO implementation of new QE. I think the Fed will further downgrade the language for the outlook without implementing any new QE, which will in effect mean OPENING THE DOOR for QE2 implementation later this year. EURUSD faces Aug 6 trendline resistance at 1.3133, with the potential of breaking out to $1.3220. CAD awaits CPI figures. USDCAD facing resistance at 1.0340s, GBPCAD still eyeing prelim target of 1.5920, before 1.5780 for medium term.


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